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Board briefed on Sarpy County tax-equalization settlement that could cost district about $825,000
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Summary
Business services staff told the Papillion La Vista board that a Sarpy County settlement with hotel owner JDHQ Hotels following a TIRC decision will effectively require a roughly $824,890 credit to the company across coming years; staff plan to recommend opting into a credit schedule rather than a lump-sum repayment and will return with a formal recommendation.
Mister Richards informed the board that Sarpy County reached an agreement with JDHQ Hotels (owner of an Embassy Suites/Courtyard property) after a Tax Equalization and Review Commission (TIRC) decision reduced assessed valuations for tax years 2022'2025. The change created a claim for overpaid property taxes that, when allocated to political subdivisions, results in an estimated district responsibility of about $824,889.99 spread over the affected years.
Richards said the county's resolution (No. 2026-060) offers two approaches: a lump-sum repayment or a multi-year credit against future tax payments. Richards recommended the credit option because the district has already budgeted revenue for the year and a lump-sum refund could require unplanned cuts. "So what that would look like is ... that company will get a credit for the next two years on property tax payments ... for the amount of $824,889.99," Richards said, and he explained the mechanics of the credit and how it would affect the district's collections.
Board members asked whether similar large TIRC settlements were pending and how the district should account for the credit in future tax hearings and the property-tax ask. Richards said staff will monitor county dockets and work with legal counsel; he also advised that the district could include expected credits as an adjustment in budget planning while being transparent about the expected reductions in revenue.
No final action was taken April 13; Richards said staff would return with a recommendation and likely an item for board action at the next meeting.
